Capstone Green Energy Increasing its Distributor Support System (DSS) Revenue as the Business Model Continues to Shift Towards Energy as a Service
March 07 2022 - 8:00AM
Business Wire
Increased DSS Fee Combined with Lower
Operating Costs and Rental Fleet Deployments to Improve Financial
Performance
Capstone Green Energy Corporation (NASDAQ: CGRN), a global
leader in carbon reduction and on-site resilient green Energy as a
Service (EaaS) solutions, announced today it is increasing its
Distributor Support System, or DSS program fee to support the
expanding EaaS business. The Company anticipates receiving an
estimated $2.8 million in the calendar year 2022. The increase in
annual DSS fee combined with the new expense reduction plan
implemented last week is intended to support Capstone's stated goal
of reaching consistent quarterly positive adjusted EBITDA.
The Company has recently undertaken a holistic review of the
organization, taking the growing EaaS business into account. The
Capstone DSS program adds diversity to the Company’s EaaS revenues
which also include long-term rentals, long-term service agreements,
spare parts and engineering services.
The DSS program started back in calendar year 2018 when Capstone
received $1.1 million from its global Distribution network through
funding derived from a formula based on a Capstone global
Distribution partner’s prior calendar year of Capstone-specific
revenue. Today, as a result of the DSS program, Capstone has
increased its worldwide marketing and customer adoption efforts
without negatively affecting its adjusted EBITDA results.
The new DSS program increase aims to support additional growth
of the Capstone EaaS business and provide improved worldwide
Distributor training, sales efficiency, website development,
branding, and funding for increased strategic marketing and
customer adoption activities. Specifically, the DSS program
consolidates funding for additional support that is necessary for
ongoing Distributor business development activities, improved
Distributor aftermarket support, customer lead generation, brand
awareness, and marketing services for each geography and market
vertical served.
“The DSS program has been very successful and is a key enabler
of our current 17% growth in the trailing twelve months ended
December 31, 2021 over the previous twelve month period and will
support future EaaS revenue growth plans as we continue to focus on
customer adoption efforts, marketing and branding,” said Darren
Jamison, President and Chief Executive Officer of Capstone Green
Energy.
“The beauty of the DSS program is that it allows us to speed up
the maturation process within the Capstone Green Energy
Distribution channel while continuing to expand the program’s
funding each year as our annual revenue increases.” Mr. Jamison
continued, “In addition, it helps identify which of our Global
Distribution partners are aligned with Capstone’s corporate goals
and improve our ability to execute future EaaS growth plans.”
About Capstone Green Energy
Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ:
CGRN) is a leading provider of customized microgrid solutions and
on-site energy technology systems focused on helping customers
around the globe meet their environmental, energy savings, and
resiliency goals. Capstone Green Energy focuses on four key
business lines. Through its Energy as a Service (EaaS) business, it
offers rental solutions utilizing its microturbine energy systems
and battery storage systems, comprehensive Factory Protection Plan
(FPP) service contracts that guarantee life-cycle costs, as well as
aftermarket parts. Energy Generation Technologies (EGT) are driven
by the Company's industry-leading, highly efficient, low-emission,
resilient microturbine energy systems offering scalable solutions
in addition to a broad range of customer-tailored solutions,
including hybrid energy systems and larger frame industrial
turbines. The Energy Storage Solutions (ESS) business line designs
and installs microgrid storage systems creating customized
solutions using a combination of battery technologies and
monitoring software. Through Hydrogen & Sustainable Products
(H2S), Capstone Green Energy offers customers a variety of hydrogen
products, including the Company's microturbine energy systems.
For customers with limited capital or short-term needs, Capstone
offers rental systems; for more information, contact:
rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000
units to 83 countries and estimates that, in FY21, it saved
customers over $217 million in annual energy costs and
approximately 397,000 tons of carbon. Total savings over the last
three full fiscal years are estimated to be approximately $698
million in energy savings and approximately 1,115,100 tons of
carbon savings.
For more information about the Company, please visit
www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on
Twitter, LinkedIn, Instagram, Facebook, and YouTube.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995, including
statements regarding expectations for green initiatives and
execution on the Company's growth strategy and other statements
regarding the Company's expectations, beliefs, plans, intentions,
and strategies. The Company has tried to identify these
forward-looking statements by using words such as "expect,"
"anticipate," "believe," "could," "should," "estimate," "intend,"
"may," "will," "plan," "goal" and similar terms and phrases, but
such words, terms and phrases are not the exclusive means of
identifying such statements. Actual results, performance and
achievements could differ materially from those expressed in, or
implied by, these forward-looking statements due to a variety of
risks, uncertainties and other factors, including, but not limited
to, the following: the ongoing effects of the COVID-19 pandemic;
the availability of credit and compliance with the agreements
governing the Company's indebtedness; the Company's ability to
develop new products and enhance existing products; product quality
issues, including the adequacy of reserves therefor and warranty
cost exposure; intense competition; financial performance of the
oil and natural gas industry and other general business, industry
and economic conditions; the Company's ability to adequately
protect its intellectual property rights; and the impact of pending
or threatened litigation. For a detailed discussion of factors that
could affect the Company's future operating results, please see the
Company's filings with the Securities and Exchange Commission,
including the disclosures under "Risk Factors" in those filings.
Except as expressly required by the federal securities laws, the
Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
changed circumstances or future events or for any other reason.
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Capstone Green Energy Investor and investment media inquiries:
818-407-3628 ir@CGRNenergy.com
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